a Property Manager " />As a resident living in a community with a homeowners’ association (HOA), you enjoy countless perks, like convenient amenities, a tight-knit community, and a beautifully maintained neighborhood. However, the biggest benefit to living in an HOA might be the enhanced property values. When property values increase, you get more from your investment, including higher resale prices and greater home equity.
Whether you’re looking to sell your home or are interested in learning more about your rising home equity, read on to discover how your HOA can affect—and increase—home values in your neighborhood.
While several factors affect a home’s worth, the condition of surrounding properties in the community can make a big impact. By maintaining standards and resident satisfaction, a community’s board of directors can positively influence property values. In fact, the Community Associations Institute (CAI) shares that HOAs that focus on preserving the neighborhood and enhancing efficiencies can protect and increase property values by as much as 2% to 17%.
Interestingly, data also shows that managed communities have a spillover effect on the value of homes just outside of the association. A recent study noted that homes within two miles of an HOA sell at an 8.5% premium compared to other non-HOA properties.
With such a significant impact on property values by address, it’s important for HOA boards to prioritize efforts that help maximize home prices. Here are five areas of focus that improve home values in a community.
The most desirable homes are well-maintained and aesthetically pleasing to potential buyers. However, the appearance of the neighborhood and nearby homes will also play a role in the property’s perceived worth. Found in the governing documents, HOAs typically have covenants, conditions, and restrictions (CC&Rs) that require homeowners to keep up with home maintenance, which may include:
In addition, HOA members pay dues to maintain community buildings and grounds, including landscaping in parks, walking paths, and other shared areas. With general maintenance being one of the top priorities for a board of directors, it’s their job to hire trusted vendors, manage reserve funds, and maintain proper upkeep of the community. That allows homeowners to enjoy an association that looks and functions at its best without added worry or cost.
An annual maintenance plan ensures your community is in top shape throughout the year. Read “Keys to Creating a Comprehensive Community Maintenance Plan” to learn tips for building one of your own.
Most HOAs have an architectural style that establishes visual harmony across the neighborhood. The most sought-after communities often have different floor plans with a similar exterior style, creating a cohesiveness that real estate buyers appreciate.
Community associations also enforce exterior design regulations that help maintain uniformity. For example, homeowners may have restrictions on paint colors and landscaping materials they may use. To prevent unapproved modifications, most HOAs have an architectural review board. It’s the job of the architectural review board to prevent safety hazards and maintain aesthetics, as each property contributes to the community’s image and appeal.
The availability of amenities and services in the community increases HOA home property values. Residents contribute regular dues to the association, which helps to fund shared amenities, like:
Your HOA may also host community events that bring neighbors together for a fun gathering or informative learning session. Plus, some associations offer on-site security and gated entry for residents. All these amenities and services can greatly enrich the residential living experience, making homes in your HOA more desirable.
Homebuyers want to live in places where they feel safe and know their neighbors care about the community. HOAs create and enforce rules and regulations to ensure that is the case. Your HOA may implement rules such as:
These rules preserve the neighborhood's aesthetic, protect lifestyle and safety factors, and stimulate home property values.
Potential homebuyers often seek neighborhoods that offer a sense of community and exclusivity. They want to connect with neighbors who share similar values and lifestyles in a friendly and welcoming environment.
HOA communities are ideal for building meaningful relationships with neighbors. They provide ample opportunities to volunteer and get involved with community operations. Residents can also engage with fellow homeowners during social events, meetings, or while utilizing community amenities. This connected lifestyle is a draw for homebuyers, which can further increase home property values in your HOA.
Purchasing a property in an HOA is a big decision. And while there are several benefits, like enhanced community living and protected home values, understanding how an association functions is important for your investment and quality of life. Download our FREE our ebook, “A Beginner’s Guide to HOAs,” to learn everything from HOA basics and terminology to who’s who in your community, and much more.
a Property Manager " />Wondering how to become a property manager? Learn the steps, requirements, and skills necessary to have a successful career in property management.
An HOA website is a powerful resource that shares important community information with residents and potential buyers. Learn how to make it stand out.
Roy Johnson of Associa Abstract Services and HOA Collection Services shares tips on how to work with collections agencies and take other measures to avoid foreclosure on your home.
John Krueger, Associa’s vice president of government affairs, shares answers to the most pressing questions regarding HOAs and politics.
While it’s not ideal, removing a board member may be best for your HOA. Read more on how to remove an HOA board member here.
HOA board members have legal responsibilities to their communities. Learn about the fiduciary duties of board directors and how you can serve your community best.
Download our ebook to learn how to put these methods into practice and use them to guide your board’s decision-making process.
RHOME’s Bryce Ross and Jason LeDell offer expert insights on HOAs, HOA rules for renters, renter rights, responsibilities, and more in this valuable guide.
Roy Johnson, senior relationship manager for Associa Abstract Services and HOA Collection Services, offers unique ways for HOAs to collect delinquent dues from homeowners.
Do homeowners association board members get paid? Find out the answer and learn more about the HOA board of directors here.
What is an HOA common area? Shared spaces are the heart of community living. Learn why common area maintenance is key to a thriving HOA.
Read on to learn some of the notable legal decisions that may impact your community, and watch a recent webinar that covers House Bill 542, the Corporate Transparency Act, and Belmont v. Farwig.
HOA meeting etiquette tips that can help homeowners make HOA meetings more productive include: 1. Make plans to attend, 2. Arrive on time, 3. Contribute.
Download our ebook to get a free architectural review application form template, specially designed for your HOA's ARC.
An HOA reserve study is a valuable tool to help your association save for capital improvements and repairs. Learn more about reserve study tips.
Learn what Jake Gillespie and Tyler Schlapkohl, sales executives at AIAI, have to say about homeowners’ association insurance and the types of coverage to consider.
In an HOA, parking problems can be avoided with education and planning. Follow along as we explore popular issues and provide tips for resolving them.
Expert Jamie Luke, Associa OnCall senior vice president, offers summer maintenance tips for HOAs to have a safe and fun season.
Melissa Eisenman, business development manager for Associa Mexico, offers tips on how to turn your managed community condo or home into a successful vacation rental.
